“Can`t we just make a secondary letter?” are words that a commercial real estate lawyer will no doubt hear countless times a year. The terms of the letters are generally considered: For example, most commercial leases require that the annual rent be paid quarterly in advance. However, a landlord may allow a particular tenant to pay the rent each month. This could be documented in a cover letter, so that if the tenant hands over their tenancy agreement, an incoming tenant must pay the rent quarterly. Letters can also be used to process any changes to a last-minute lease agreement. For example, if the parties have already agreed to sign the lease, but there is a small problem that could be documented by a letter instead of changing the lease itself. Landlords and tenants need to be more careful to consider the consequences of terminating the letter and then make them clear. It may not be so smart to have a document that is heavily weighted against the tenant. Since letters of convenience generally bind the owner`s rightful owners, it is important that they be passed on by the owner to a potential buyer. It is therefore necessary to ensure that both letters are kept during the rental.
Otherwise, the buyer may claim damages for misrepresentation after the closing of the sale and purchase. The purchaser is cited for the losses he will suffer as a result of compliance with the concessions of the subsidiary letter that the lessor had not disclosed. This subsidiary letter, which waives a provision of the tenancy agreement, registers the landlord`s agreement that a certain tenancy period does not apply to the tenant. If the concession is to be temporary, it must be clearly stated in the letter that this is the case, i.e. it will take a number of years for a defined event to occur or until the tenant cedes the lease, in which case the assignee will not benefit from the concession.